, 1887-12-08

revenues are estimated at $3.50. 900, 600,
and the expenditures 1916, s17. 000, leav-
ing an estimated surplus of 500, 1872, Op0
on June 80, 1883. The secretary esti-
mates the surplus for the year 1889 at
$50, ass, 900
The secretary says the urgency of the
question OF surplus revenues is SO great
that 1t should demand the earnest atten-
ton of both executive branches of the
government. The secretary mentions the
following ways in which the receipts and
expen iitures ofthe government may be
equaliZed.
First: The purchase Of the interest
bearing debt of the government. Second:
Larger expenditures by the government
Tor other purposes than the purchase of
bonds, so that they shall each year equal
the taxation of that year. Third: A re
duction of revenue from taxation to the
amount actually required
TO MEET NECESSARY ExPENs Is.
All of these expedients have in common
the one merit OF preventing the derange-
ment to business which must follow the
boarding or the locking up in the treasury
Of the circulating medium of the people.
In regard to the first plan the secretary
agrees with what the president in his mes
sage said on the same subject. He then
says:"l canno believe that congress adopts
the second expedient, viz, the enlarge
ment OF the governments expenses sim
ply to expend the money raised by taxation
when the public veal does not otherwise
call for the expenditure. Reduction OF
the eel from taxation is the only fit
remedy for the evils which threaten the
country. This may be accomplished in
various ways. One is TO reduce or abol
sh internal revenue taxation. In favor
of this is the fact that in a small part
of the Southern states the internal tax on
liquors and tobacco is thought to be OPP
pressivc and is odious to the people of
those regions; and further, the fact
that by its reduction the expenses of it's
collection might be some what reduced.
HI CHIEF CAUSE
for prejudice against this tax seems to be
that there was no such tax before the
war for the Union. and 1t is looked upon
as a reminder Of the measures adopted to
raise money to carry on the war, and
which ought not to be continued in she
time of peace, and is interfering in some
way with the natural rights Of mankind.
That internal taxation Of spirits and
tobacco began during the war is not the
reason why it should be done away with
now. If it be in itself wise, the fact that
the rates OF customs taxation were raised
during that time far higher than ever be-
fore in our history, and have been contin-
ued until now, ought not to determine
the manner Of their treatment now This
should rather depend on what is just and
n.-nl,aFN NJ tho nYAgnnf tina
Neither passion, prejudice nor senti-
mentality should have a place in the con
sideration of the questions of taxation.
As to the expense of collecting internal
revenues, | suggest that the a~malgama,
ton of the customs All i%nternal revenue
sy tens is entirely icaSible-and therefore
a large number Of offices
MIGHT BE ABOLISHED,
and that the expense Of the whole system
might be made not to exceed that of the
efficient enforcement of the customs laws.
| earnestly commend this suggestion tc
the careful consideration of congress.
To do away with the whole revenue
from internal taxes at present would dl
minish revenues that would be nee ssary
either to lay duties on articles of importa
ton now free, such as tea and coffee, oil
to suspend the sinking fund requirement.
and also materially
DIMINISH OTHER EXPENSES
of the government. But it is not vel
I either to abolish or reduce internal reve'